Page 36 - MARKETING & PUBLIC RELATIONS EBOOK IC88
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strengthened further. One of the considerations would be the position of the product in the life
                      cycle. Products getting obsolescent need not be continued with. Another consideration would
                      be  the  contribution that the  product is  making  to  the  total  performance  of  the  company. In
                      insurance, the contribution can be determined in terms of clams ratio, volumes of premium, size
                      and nature of segment catered to, costs relative to premium, etc.
                   2.  The  Boston  Consulting  Group  had  developed  a  grid  known  as  the  Boston  Matrix,  to  do  this
                      analysis. It takes into account the appropriate stage in the life cycle reached by various products
                      and  the  relative market share  of  the  products. The  term `Relative market  share'  used in the
                      matrix  indicates  the  market  share  enjoyed  by  the  product  with  reference  to  the  other  main
                      operators  and  market  growth  rate  indicates  the  rate  of  growth  of  the  total  market  for  that
                      product.

               E. DISSONANCE

                   1.  The factors affecting perceptions or customers are different before, during and after purchase.
                      Before  purchase, they  are  affected  by  the  image  created  by the  brand,  previous  experience,
                      what the friends say, published results and endorsements and the price as advertised. During
                      purchase, the relevant factors are the performance specifications, the salesman, the warranties,
                      service and repair arrangements, support programmes and the price which is quoted.

                   2.  In the case of insurance after the ourchase the only experience to create a perception, is the
                      continued attention and concern shown to the customer, which would reassure him that the
                      promise he believed in while making the purchase, was not misplaced. If he does not receive
                      such  attention  and  expressions  of  concern,  he  could  start  doubting  the  bonafides  of  the
                      salesman. That is the first step to having doubts about the wisdom of the purchase. This is what
                      is  known  as  `Dissonance'.  Dissonance  is  likely  to  be  more  frequent  in  the  case  of  insurance
                      purchases than in other purchases, because of the following.


                     in insurance, the payment of premium is real and immediate while the benefit is distant and
                      uncertain
                     In most other purchases, there is a predisposition or willingness to buy, while in insurance, it is
                      as if the purchase has been forced. The need is not felt strongly.
                     Policyholders feet a sense of loss or waste if the claim does not occur
                     There are conditions and warranties which the policyholders, being unaware of their
                      implication, could ignore affecting the validity of the insurance policy.

               F. MARKET RESEARCH

               (a) Limitations

               Market research is the traditional method of finding out customer needs, on the basis of which product
               strategies  may  be  developed.  A  variety  of  techniques,  like  surveys,  questionnaires,  interviews,
               observations etc., have been developed to do market research in relation to goods. There are limitations
               in using these in the case  of  services, mainly because  services are intangible, difficult to measure or
               sample and even difficult to articulate precisely.

               (b) Contact Points












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